Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Accounts attached - The current reality facing beef farmers - Any advice?

Options
135678

Comments

  • Registered Users Posts: 124 ✭✭James2020App


    Thanks guys, these two posts address the same question so will answer them together. It was previously farmed full-time after he retired at fifty. Prior to that it was farmed part-time whilst paying a labourer. Sounds a bit mad but I feel as if am falling into the same traps as my father had when he was working full-time and farming. Long term it leads to too much stress and that over long-term leads to sickness. Really not a road that I want to go down myself. So between this is a big reason for currently reassessing.

    I'm in a very fortunate position to have a decent off-farm job bringing in around €75k a year. I want to keep this job up. It is the kind of job if I left it to go full-time farming I would not be in a position to get it again. I could cut back to working four days a week and earn around €60k gross too. There would be flexibility in that regard. This job comes first to be honest and is probably a large part of the reason the farm has not been fully ran at its optimal level. A great example of this is contractor's bills, when you are away for the day and getting contractors in, there is a certain amount of piss-taking that can occur.

    To answer your question, I can give the farm maybe 20 hours a week if working 100% or 25 hours a week if working 80% of time. I can also pay labour for the farm but unless the venture is profit-making in my book paying someone more than I make on the farm is out of the question.

    C0N0R I am considering leasing a portion of it and keeping about 50 acres for suckling and finishing, moreso as a hobby. If I ever have kids, it is almost a necessity for me that they grow up on a farm. Leaving all the financials etc. aside. I do not think there is a better way of anyone to grow up than on a farm in the country. Learning all things from carpentry, plumbing, animal husbandry etc etc, so wouldn't lease it all.

    Yeah leasing after getting a farm transferred isn't really such a popular choice because it sort of looks like the easy, money-grabbing way out to an extent.

    It is decent enough land. If things were different in my own life. I would go into dairying but just not willing to give up the day job to be honest. Too much risk there in my book.


    Paddocking definitely would be the way forward. It was the most discussed thing in the whole green cert to be honest. Didn't actually implement it though. Yeah major differences there with our per head costs. Something has got to give here and to be honest think it is going to be the large number of suckers.



  • Registered Users Posts: 377 ✭✭trg


    Look my tuppence worth is that you've gotten the idea now. Reduce the cow numbers and be absolutely ruthless in this and stay ruthless. I'm gonna try FTAI this year as I've made the call it must work around my schedule.

    So dramatic reduction in cows plus summer grazing the extra land.

    I'm like you in that good job but demanding family life on top of that, you've that pleasure to encounter yet!

    One or two making little of your efforts re cost, at least you know your costs. Many don't.

    So reduce and be ruthless is my motto.



  • Registered Users Posts: 8,115 ✭✭✭funkey_monkey


    @trg - FTAI? What is that?



  • Registered Users Posts: 1,138 ✭✭✭MIKEKC


    Given that every article we read tells us that sucklers loose money plus the extra work why are people advising that a number of them be retained.?



  • Registered Users Posts: 8,115 ✭✭✭funkey_monkey


    If you could get some decent income from your farm, then reducing to a 4 day week would give you a nice balance and allow you to maintain/develop your skillset and experience at work. Plus it gets you and about and interacting with people - there is a lot to be said for that.

    What were the accounts like for the last few years - is what you presented a trend or an outlier?

    If you could reduce the load so that you only need help on certain days like when handling for TB, PD, dosing, etc then that would be a good step forward. I'd agree with the general consensus that reducing the suckler numbers would be a good starting point.

    Are you able to feed them yourself without help in the winter?

    Can you produce silage off all your ground - maybe you could have some of the land for silage for yourself or to sell on and then lease it out for winter grazing (or vice versa). It would give you a small income on the ground and allow you to make silage without forcing the land. Certainly if I was considering renting the ground, I would be first looking at renting out for autumn/winter and holding back for myself over summer. Fully rented ground is often not fully cared for so be aware who you rent it too if you go down that road. We bought some ground that was long term rented and we have to fully reseed and bring it back into productive use.

    If you are grazing tight, then maybe reducing the numbers and going to a form of rotational grazing (need paddocks or subdivision of fields with electric fencing would be sufficient) would allow you to keep on a bigger portion of the land, but reduce fertilizer inputs as you're forcing the ground.

    Scan the cows earlier - when all in calf they can be split into sub herds to reduce poaching on your ground and allow you to keep them out longer. Look at your cows - if they are big heavy things look to reducing your mature cow size to within the 600kg - 650kg range.

    In regards to what you want to do with the calves - you can either push them down the road if prices are good or if you have an abundance of time and silage put them in a pen and bring them on yourself. You will always have this option there on a year by year basis.

    In regards to the farm infrastructure and machinery - any foreseeable expenses on the horizon?

    Have you looked into the possibility of putting a small portion of your land into forestry? I know it takes it out of farm use, but 10 years down the line, it would be some grand shelter for an exposed bit of ground or block out the hideous house next door or make some use out of a rushy/boggy section of a field or whatever reason you want.

    One thing I would say is, whatever you do, do it in small steps.



  • Advertisement
  • Registered Users Posts: 9,226 ✭✭✭tanko


    Fixed time Ai i think, have most cows calving as close together as possible.



  • Registered Users Posts: 8,115 ✭✭✭funkey_monkey


    OP said he likes them and wants to keep some.

    Call me mad but I do enjoy sucklers, would be happy enough with smaller numbers. It is the type of farming that have been used to growing up and have experience in. Many would recommend sheep but just don't have the gra for it.



  • Registered Users Posts: 8,115 ✭✭✭funkey_monkey


    Sorry, but I'm going to sidetrack here a bit. So you AI a batch. Then x weeks down the line you PD them - at that stage what do you do with the empties - I presume you cull as going again would result in a second calving window for those that didn't hold first time? Or is that the plan - two tight windows and anything that doesn't hold 2nd time gets culled?



  • Registered Users Posts: 9,226 ✭✭✭tanko


    I’ve never done it but first you synchronise the animals using cidrs or prids, then Ai them ten days (I think) later, hopefully a lot of them will go in calf but it would be a bit drastic to cull anything that repeated three weeks later i think. I suppose you could just Ai any repeats after three weeks, or let a bull out, maybe any repeats after another three weeks could be culled depending on how long of a calving season you want. A pre breeding scanning check before you start any of this might be advisable to sort out any problem animals.



  • Registered Users Posts: 1,138 ✭✭✭MIKEKC


    I had a large suckler herd in the 80s and liked them. Then went to fattening Fresians and got to like them too, particularly how easy they are to manage and I am still benefiting from them through my BP. I also have sheep and agree you have to have a gra for them.



  • Advertisement
  • Registered Users Posts: 2,955 ✭✭✭SuperTortoise


    Just wanted to say well done for posting figures, i'll chip in with my 2 cent later on tonight when i get infront of the laptop.



  • Registered Users Posts: 8,115 ✭✭✭funkey_monkey


    That's odd! We were talking about doing this today! Talking about getting the bull genomic tested to see what we have. Got some problem calves and whilst it is highly likely the cows are the issue I want the bull checked to ensure he is good enough.



  • Registered Users Posts: 9,226 ✭✭✭tanko


    A bulls genomic evaluation/stars doesn’t really tell you whether or not he’s good enough, the calves he produces do that.



  • Registered Users Posts: 3,874 ✭✭✭Dickie10


    i think from my experience of taking over the farm about 8 years ago that cash flow is king. there are now no months where money isnt coming in outside of subs, it really helps to pay bills. i got rid of the few sucklers , i had about 20 kind of by accident and kept all to beef. I found there was far to much risk and labour vs reward. Now its all weanling and yearling heifer to beef, biggest finding was massive reduction on labour, vets bill and feed. younger and store heifers so easily fed and finished. i now have 120 ewes and 30 in lamb ewes and buy in around 200 store lambs each august and september although this year only bought 100 as too dear i felt. but you are in the north west so its pretty much a different world to south meath. im fearful of every lad getting in on ewe game but would a ewe flock not suit a lot better than big continental sucklers? i guess store lambs are out the window where you are for buying and killing but maybe hold over dry and sell nice hoggets for breeding in autumn? they wuld take no meal if kept dry. you need to get some way of getting cheques in every month of the year. the only month of the year i dont have money coming in is April unless a few runt store lambs/hoggets.



  • Registered Users Posts: 377 ✭✭trg


    Fixed Time AI - idea being you'll condense calving to a period that suits you.

    There's pro's and cons but I'm gonna try anyway



  • Registered Users Posts: 377 ✭✭trg


    Dunno. I'm only saying what I'm doing really. I'm not keeping them for financial reasons.



  • Registered Users Posts: 377 ✭✭trg


    Well we'll still have the bull for this year so he'll mop up what doesn't make it to FTAI by not keeping or being late calving to begin with.

    He'll be getting the road on July 1st or thereabouts when passed a BDGP date so that'll be that.

    What isn't in calf by then will be culled.

    What doesn't make it to FTAI in 2023 will also be culled. The 22 born heifers will be added to FTAI by then though so should keep the 15ish numbers up that way.

    There will be a high turnover of cows alright



  • Registered Users Posts: 3,874 ✭✭✭Dickie10


    sorry meant to say im working as well, but locally enough o no long commute, leave at 8am home at 4:30, a very odd evening i have a meeting or in autumn training a team.



  • Registered Users Posts: 13,419 ✭✭✭✭Danzy


    Set your target for next year at 50k and an awful lot less hours per week.

    Very doable.



  • Registered Users Posts: 124 ✭✭James2020App


    Thanks yeah definitely going to reduce suckler cow numbers and be a lot more on top of the money going out. Especially the contractors, meal and fertiliser.

    Yeah 80% is a solid mix because keeps the work side going. The problem with going 80% is it is likely that you will still have to do much the same amount of work and responsibilities with a day less to do it in. Have just seen this happen very occasionally.

    Good question if this year is an outlier. It is almost too early to say this is the second full year. Last year was somewhat similar, the profit was closer to €20k. This was due to weanlings purchased and finished though. If you exclude them the profit was about €12k with similar setup. The costs across the board for the past two years have just been to high in truth.

    Yeah agree I will be reducing suckler numbers. The only do need help really with TB testing, dosing, going to mart etc. So wouldn't really be bringing much labour in as is. Oh yeah well able to feed them myself without help in winter.

    Yeah the vast majority of the ground could produce silage alright. Renting or leasing is a tricky one. Finding an appropriate tenant could be a challenging one. I know of tenants in the area who have broke renters hearts between not paying, and refusing to leave the ground then, destroying ground and not taking any care of it. Lease contracts a lot of the time are not worth the paper that they are written on.

    Paddocking definitely would be the way to go, but a bit of pep would have to go into getting that right.

    On your farm infrastructure & machinery. Again it fortunately has good sheds build in last twenty-five odd years all to grant spec. The farm doesn't have much machinery really two tractors and various older pieces of kit. They are grand really for what is done with them. So no immediate large expenses in the next three years there neither.

    Forestry would be an option for maybe 20 acres of it. Again something haven't considered before so may look into it a bit.

    Yeah I have no real affinity just to sucklers really. More of a gra for any kind of cow/calf/beast. Would be as happy feeding a pen of them well as calving a cow and seeing the calf grow. So fattening like that is definitely not of the cards neither.



  • Advertisement
  • Registered Users Posts: 10,707 ✭✭✭✭patsy_mccabe


    OP, just my thoughts.

    • As for costs, consider all costs as annualised costs. By that I mean, if you spread costs over the years you get benefit from them, the costs are more realistic. For example, re-seeding and liming. You may cost them all to the year you paid for them , but the real benefits may be over 10 years or so. I'm not saying you do this in the accounting, but consider it for your own cost/benefit as it were.
    • Because of you off farm high income and high rate of tax, you can invest heavily in the farm now and benefit from the Capital Allowances and income tax write-offs. It doesn't necessarily have to be a shiny new tractor (which will lose value anyway) but could be sheds, proper handling facilities. Whatever makes life easier for you down the road.
    • Focus more on Profit and less on Output from now on. We are all guilty of it, me included.


    'When I was a boy we were serfs, slave minded. Anyone who came along and lifted us out of that belittling, I looked on them as Gods.' - Dan Breen



  • Registered Users Posts: 18,225 ✭✭✭✭Bass Reeves


    If virtually all your ground is capable of producing silage, I would get rid of the suckler's over 3-4 years. Change over to a summer finishing system. Buy in bucket fed weanlings and yearlings. My own preference is for Friesians but everyone to there own as long as you keep an eye on profitability.

    Watching a few marts this week 220-280 kg Fr yearlings can be bought for 350-450 euro. You would probably pick up a few coloured yearling for value as well. These sort of cattle could go to grass in Mid late March maybe even earlier. 85% of these sort of cattle ran in a paddock system will finish July-September 12 months at 330-370kgs. You would average 1350-1400 euro/ head at a 4/kg base price.

    Suckler's are inherently unprofitable. Most lads cannot grasp that. On better type land you have other options. System such as Calf, weanling/yearling or store to finish systems are a much better option well.

    If your internal fencing (around fields) is ok it fairly easy to work a paddock system using pigtails and reels even if you have to work off battery fencers. In time move water troughs to middle of the fields and put three posts around them. You can work paddocking very hard asy off them.

    Straight away your straw cist will be gone. Your fertlizer cost will remain much the same. Silage only for store cattle being over wintered. I even question the use of ration on bucket fed weanlings if you have decent silage. Plenty of bagged minerals over the winter.

    During the winter most days you will be in and out of the yard in an hour. There are days I have the silage pushed in to the barriers in twenty minutes.

    Slava Ukrainii



  • Moderators, Society & Culture Moderators Posts: 12,630 Mod ✭✭✭✭blue5000


    OP thanks for starting the thread, first step to recovery has already been taken, you realize you have a problem.

    For this year put paddocks into a few fields nearest the yard, just divide them in half with a water trough in the middle of the field. You can always sub divide them again across the trough or just use pig tails and reels.

    Have you any info on the cows like genomics or icbf records? If you have it makes it easier to get rid of non performers.

    Decide when you want cows to calve, for me it's mid March to May. A bit later might suit you. Then cull or sell off the cows calving late with calf at foot, cows calving too early can be let slip a few months before bulling.

    If you are working off farm get an easy calving bull, you'll take a hit in the mart selling weanlings but if you go to less cows and finishing there's no advantage with continentals.

    Seriously consider about 40 acres of forestry on the worst land, you're at the right age to benefit from it, tax free, kids going to college in 20 years and a good shot in the arm at clear fell. You could do half now and half in 5-10 years time to stagger income from thinnings and clear fell.

    Organics isn't for everyone, the paperwork is brutal, nobody seems to mention that. It could work for you, there are walks/open days this year just google them and try talk to as many organic farmers as you can before deciding. Look at their yards and see how they adapted buildings to suit the system.

    Best of luck.

    If the seat's wet, sit on yer hat, a cool head is better than a wet ar5e.



  • Registered Users Posts: 4,165 ✭✭✭blackbox


    First off, I'm not a farmer so I'm looking at this from the outside.

    It seems to me that there are a lot of people in the business who are not worried if they don't make a profit - i.e. they have other income and are farming because they want to keep the land or because they like the lifestyle and maybe save a bit on tax.

    If these people are prepared to sell at or below cost, how can someone who is trying to make a profit possibly compete with them? Any market that is flooded like this will be destroyed, whether you are selling cattle, televisions or tulips.

    Farmers complain about supermarkets selling below cost (and I agree with them), but if they are doing the same thing themselves they need to stop and think and take a good look at themselves.



  • Registered Users Posts: 18,225 ✭✭✭✭Bass Reeves


    Only thing I would disagree with is selling cows with calves at foot. These late calving cows when sold with calf at foot are bought by dealers or cull finishers. The calf is taken from the cow and resold again. If you see sucklers with a calf after May split them. Ideally have the calf 3-4 months of age at least.

    Slava Ukrainii



  • Registered Users Posts: 1,036 ✭✭✭minerleague


    Is the paperwork that bad or are you trying to put off people from joining to protect organic premium ?😉



  • Moderators, Society & Culture Moderators Posts: 12,630 Mod ✭✭✭✭blue5000


    Not trying to put anyone off, I'll just give you one example; the application form is about 21 pages.

    If the seat's wet, sit on yer hat, a cool head is better than a wet ar5e.



  • Registered Users Posts: 18,225 ✭✭✭✭Bass Reeves


    Another thing about organics is that in previous organic scheme's a lot of environmental scheme options were not available. It reduced the ability to get a decent payment off GLAS. In general it cost lads 2-4 k.in environment schemes. There is talks that this will not be a problem in future.

    Slava Ukrainii



  • Registered Users Posts: 373 ✭✭JimmyCorkhill


    Is leasing the land (without the risk of the lessee having any entitlements) the less stressful & sensible option?

    Sounds like a nice passive income to me, while working fulltime. Maybe you can top up your pension too to avoid extra taxes on the income from your job.

    Or maybe keep a portion of the land if you still want to do a bit of farming.



  • Advertisement
  • Registered Users Posts: 10,707 ✭✭✭✭patsy_mccabe


    "...If these people are prepared to sell at or below cost" - what other option do they have? Farming is not like any other business. You can't refuse to sell. Most land in this country is only suitable for livestock. Cycle times in beef are also very long, up to 3 years and so farmers can't react to market prices quickly. All farmers can do is reduce output and try to improve efficiencies, but even that is limited.

    'When I was a boy we were serfs, slave minded. Anyone who came along and lifted us out of that belittling, I looked on them as Gods.' - Dan Breen



Advertisement